Sony saw its shares drop 2.75 percent this morning after analysts noted that PlayStation 3 units on display at the Tokyo Game Show had to be repeatedly reset due to overheating issues.

" While the reason for this is unknown, we suspect it may be due to overheating as a result of enclosing the units and the high temperatures at the venue," analyst David Gibson of Macquarie Equities wrote. " We are concerned that such a problem has occurred so close to full production and is clearly negative news for the company."

Sony claims there is no problem with the PlayStation 3 hardware and the reason for these overheating probles were cause by the kiosks they were in, which concentrated the heat generated by the units.


" It' s not a problem with the PlayStation 3 unit itself," Sony spokeswoman Nanako Kato said. " For a normal player at home, there shouldn' t be any problem."